Seed2Diesel: Processing Oilseeds for Farm Fuel Self-Sufficiency

Opportunity for

• Investors and Partners (Commercial, Research, and Industry) and Companies who have an interest in viable alternatives to using fossil-fuel-diesel in agriculture. 
  ^This opportunity is only for professional and sophisticated investors.

Opportunity description

Industry challenge

After taking out the value of the protein, which goes to the livestock industry, the oil in oilseed harvests is valued at less than what a grower pays for their fuel. To expect every farmer to purchase, operate and maintain the equipment needed to make consistent quality fuel every year that meets engine standards, whilst also developing a market for the meal, is unreasonable.

Through excess water or drought, crop yields are reduced at increasing frequency and more often affected by mould or aflatoxin residues, being penalised by processors, could still be fuel.

Drought-stricken livestock producers feed their livestock cotton seed when nothing else is available. Ruminants can only handle 5% oil in their diet (mono-gastrids 10%). Cotton seed is 20% oil. The stockfeed industry values vegetable oil with carbohydrate as “digestible energy”, when the oil is more valuable as liquid fuel.

Australia’s last 2 crude refineries, each given $1billion to secure profits, are due to shut by 2030. Australia holding 9days in reserve, imports majority of fuel from India, Singapore, and China who all process smuggled Russian crude.

Food Security is dependent on Fuel Security.

ABARES identifies that last financial year >AU$4billion was spent on fuel by Australian agriculture.

Current opportunity

Seed2Diesel are currently seeking interest from investors and commercial partners to fund development of a number of technologies to maximise the processing efficiency. They are currently building a basic pilot unit to show that we can do it.

From a pool of >700 grain growers on the Eastern Darling Downs, Seed2Diesel have obtained letters of interest from 14 growers (from 22 interviewed) who combined use >421m3 of diesel per annum, justifying the building of the processing facility that does 1m3/day, as a starting point.

Charles Sturt University as part of their Renewables in Agriculture Centre of Excellence (RACE for 2030) program are willing to fund $333k @2:1 in return for a facility at their AgriPark in Wagga Wagga to serve the fuel needs not just of the CSU AgriPark, but also the wider Wagga community.

The technology pipeline that they develop, along with the business formula, will be replicated in local processing facilities, established through co-ops, franchises, or distributorships, in rural oilseed growing areas.

Opportunity background

We have developed a unique oilseed press that as part of the pilot unit we are automating for 24hr operation. The oilseed meal exits the press as a low dust biscuit, easily seen by livestock. Whilst economic in capital and energy, all mechanical presses leave an amount of residual oil in the meal. Most oilseeds are processed using hexane solvents (poisonous, carcinogenic, explosive) with anecdotal evidence of injury to livestock.

The biscuits from our press we are wanting to put through a CO2 bath to maximise oil extraction yield. The oil is currently cleaned using a centrifuge and filter, we are wanting to clean through ultra/nano membrane filtration. After cleaning we'll be using enzymes to convert the oil to Biodiesel fuel.

To clean the fuel initially we'll use a cellulose filter or water wash and are wanting to develop more ultra/nano membrane filtration that will allow re-use of the enzyme. By modifying a diesel electric generator, the glycerine by-product from the process we want to use for process heat and power. This approach will make for efficient biodiesel production, exceeding fuel standards, whilst making a meal biscuit with <=2% residual oil that can be fed directly to livestock without negatively impacting their health.

Potential other applications

As part of the CO2 bath, we are also wanting to extract flavonoid compounds for biomedical applications. We have trialled the extraction concept with the Griffith Institute for Drug Discovery, and through their network found a flavonoid subset from 1 oilseed that showed impact on the Barber’s Pole worm, a livestock parasite that is developing resistance to current treatments (Ivermectin). Process could also extract aflatoxin from impacted crops. Also considering the possibility of processing the oilseed meal for direct human consumption (e.g. de-hulled sunflower kernels to make a high protein gluten free sunflower flour).

With oilseeds being a part of fibre crops, looking to also develop a stockfeed plastic bag replacement, through a pressed box made of hemp, flax, or cotton trash, to contain the meal biscuits that may function as temporary feed troughs that break down in the paddock without causing environmental or livestock harm.

^Professional and sophisticated investors as defined in the Corporations Act 2001 (Cth). The content of this opportunity is intended for use by persons having professional experience in matters relating to investments and must not be acted or relied upon by any other person including, without limitation, retail clients.